Personal Bankruptcy Laws for Dummies (ISBN - 0471773808)

386 Pages·2021·2.63 MB·English

by James P.Caher and John M.Caher

Personal

Bankruptcy Laws

FOR

DUMmIES

‰

2ND EDITION

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by James P.Caher and John M.Caher

Personal

Bankruptcy Laws

FOR

DUMmIES

‰

2ND EDITION

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Personal Bankruptcy Laws For Dummies®, 2nd Edition
Published by
Wiley Publishing, Inc.
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Hoboken, NJ 07030-5774
www.wiley.com

Copyright © 2006 by Wiley Publishing, Inc., Indianapolis, Indiana

Published simultaneously in Canada

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About the Authors

James P. Caher, a practicing attorney with 30 years of experience, is a nation-
ally recognized expert on consumer bankruptcies and authority on the
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

Jim coauthored, with his brother John, Debt Free! Your Guide to Personal
Bankruptcy Without Shame (Henry Holt, 1996) and two highly regarded books
for lawyers: Discharging Marital Obligations in Bankruptcy (LRP, 1997) and
Discharging Credit Card Debts in Bankruptcy (LRP, 1998).

In addition, Jim has published scores of articles for bankruptcy professionals
and is frequently called upon to analyze and interpret the complicated provi-
sions of the 2005 bankruptcy law. He was labeled the “online guru” by a
national legal weekly because of his regular appearances on the Internet as
an expert analyst on bankruptcy law. Jim also serves on the editorial board of
the American Bankruptcy Institute.

Jim graduated from Niagara University and then earned his law degree from
Memphis State University Law School, where he was a member of the Law
Review and recipient of the American Jurisprudence Award for Excellence in
the field of debtor-creditor relations. He filed his first consumer bankruptcy
case shortly after graduating in 1975. Jim lives and practices in Eugene,
Oregon.

John M. Caher is a legal journalist who has written about law and the courts
for most of his 25-year career.

Currently the Albany bureau chief for the New York Law Journal, John previ-
ously was state editor and legal affairs reporter for the Times Union of Albany,
New York. His legal reportage has won more than two dozen awards, including
prestigious honors from the American Bar Association, the New York State Bar
Association, the Erie County Bar Association, and the Associated Press.

John coauthored, with his brother Jim, Debt Free! Your Guide to Personal
Bankruptcy Without Shame (Henry Holt, 1996). He is the author of King
of the Mountain: The Rise, Fall and Redemption of Chief Judge Sol Wachtler
(Prometheus Books, 1998). In addition, John was the principal writer assist-
ing former U.S. Treasury Secretary William E. Simon in preparation of his
memoirs. Mr. Simon’s autobiography, A Time for Reflection, was published in
2003 by Regnery.

John is a 1980 graduate of Utica College of Syracuse University, where he
received his bachelor’s degree in journalism, and a 1993 graduate of
Rensselaer Polytechnic Institute, where he earned a master’s degree in tech-
nical communications/graphics. John lives in Clifton Park, New York.

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Dedication

This book is dedicated to the memory of our parents, James C. and Dolores
Caher (a.k.a. “Big Jim and Fitz”), who died way before their time but left us
with their own life examples of personal responsibility, fairness, justice, affin-
ity for the underdog, basic decency, and common sense. It is also dedicated
to the five grandchildren they should have known and would have adored
and enjoyed beyond measure: Sean and Brendan Caputi of East Aurora,
New York, and Erin, Kerry, and Norah Caher of Clifton Park, New York.

Authors’ Acknowledgments

For the second edition of this book, just like the first, our respective spouses
Kate Donnelly and Kathleen Caher were there every step of the way with
their love, support, and encouragement.

Also for the second edition of our book, just like the first, Michael J. O’Connor
took time from his busy law practice to offer expert analysis of our effort.
Mike, an outstanding bankruptcy attorney in his own right and prominent
partner in O’Connor O’Connor Mayberger & First PC in Albany, New York, has
always been there when we needed him, and we would like to publicly
acknowledge our humble appreciation for his efforts.

We also acknowledge the continuing dedication of our long-time agent, Sheree
Bykofsky of Sheree Bykofsky Associates in Manhattan, and the insights of the
talented folks at Wiley Publishing who made this come together, especially our
project editor, Kelly Ewing, and acquisitions editor, Stacy Kennedy.

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Publisher’s Acknowledgments

We’re proud of this book; please send us your comments through our Dummies online registration
form located at www.dummies.com/register/.

Some of the people who helped bring this book to market include the following:

Acquisitions, Editorial, and
Media Development

Project Editor: Kelly Ewing

(Previous Edition: Marcia L. Johnson)

Acquisitions Editor: Stacy Kennedy

General Reviewer: Michael J. O’Connor

Editorial Manager: Michelle Hacker

Editorial Supervisor and Reprint Editor:

Carmen Krikorian

Editorial Assistants: Hanna Scott, Nadine Bell

Cartoons: Rich Tennant (www.the5thwave.com)

Composition Services

Project Coordinator: Jennifer Theriot

Layout and Graphics: Andrea Dahl,

Stephanie D. Jumper, Barry Offringa

Proofreaders: Leeann Harney, TECHBOOKS

Production Services

Indexer: TECHBOOKS Production Services

Publishing and Editorial for Consumer Dummies

Diane Graves Steele, Vice President and Publisher, Consumer Dummies

Joyce Pepple, Acquisitions Director, Consumer Dummies

Kristin A. Cocks, Product Development Director, Consumer Dummies

Michael Spring, Vice President and Publisher, Travel

Kelly Regan, Editorial Director, Travel

Publishing for Technology Dummies

Andy Cummings, Vice President and Publisher, Dummies Technology/General User

Composition Services

Gerry Fahey, Vice President of Production Services

Debbie Stailey, Director of Composition Services

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Contents at a Glance

Introduction .................................................................1

Part I: Bankruptcy: The Big Picture ...............................7

Chapter 1: Considering Bankruptcy.................................................................................9
Chapter 2: Stopping the Bleeding...................................................................................27
Chapter 3: Meeting the Players ......................................................................................47
Chapter 4: Deciding Which Type of Bankruptcy Is Best for You................................57
Chapter 5: Confronting the Means Test.........................................................................69
Chapter 6: Getting from Here to There: The Bankruptcy Process .............................91
Part II: Avoiding Bankruptcy.....................................115

Chapter 7: Considering Alternatives to Bankruptcy..................................................117
Chapter 8: Handling Bill Collectors..............................................................................135
Chapter 9: Negotiating with the IRS.............................................................................145
Part III: Keeping Your Stuff.......................................153

Chapter 10: Understanding Which Assets Are Off Limits to Creditors ...................155
Chapter 11: Dealing with Secured Debts .....................................................................173
Chapter 12: Saving Your Home .....................................................................................183
Part IV: Getting Rid of (Most of) Your Debt...............199

Chapter 13: Lingering Obligations................................................................................201
Chapter 14: A House of Cards: Wiping Out Credit-Card Debts .................................215
Chapter 15: Give unto Caesar: Using Bankruptcy to Deal with Tax Debts..............223
Chapter 16: The Devil Made Me Do It: Fines, Fraud, and Other Foibles..................237
Chapter 17: Till Debt Due Us Part: Bankruptcy and Divorce....................................247
Chapter 18: Student Loans and Other Mind Games...................................................257
Part V: Strategies for a Successful Bankruptcy ...........271

Chapter 19: Avoiding Troubles with Your Trustee.....................................................273
Chapter 20: Living on the Edge in Chapter 13 Bankruptcy.......................................283

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Part VI: Enjoying Your Fresh Start .............................305

Chapter 21: Repairing Your Credit ...............................................................................307
Chapter 22: Staying Out of Financial Trouble.............................................................319
Part VII: The Part of Tens..........................................327

Chapter 23: Ten Common Bankruptcy Mistakes........................................................329
Chapter 24: Ten Things You Can Do Right Now to Ease Your Financial Woes........333
Chapter 25: Ten Common Questions about Bankruptcy...........................................337
Appendix: Homestead Exemption Laws .......................343

Index .......................................................................347

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